2009-02-16 — ml-implode.com
``What they don’t tell you is that Option ARMs written by World Savings are far more toxic than your standard option ARM. NegAm is allowed to build up for 10 years or to 125% of the original loan balance before the mortgage recasts. With most option ARMs, the deal is 5 years or 115%.''
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catherine at 03:02 2009-02-17 said:
after watching that show went back and reread the wachovia thread on this forum FROM NOV 07, we knew it then but the World and Wachovia guys were calling anyone who said that idiots...............oh well the truth will come out on everything now, we will have no economy so will have nothing else to do Permalinkschmendrick at 04:03 2009-02-17 said:
Over the next few months, many of the things Catherine said will come to pass. Even so, her detractors will pooh pooh her as long as their heads are in the sand. PermalinkBIGTXLENDER at 06:01 2009-02-17 said:
the is nothing wrong with the Option ARM it is a great tool for INVESTORS not LOSER HOMESTEAD BUYERS TRYING TO MAX OUT THEIR HOUSE PURCHASE the loan was never designed to be used in a bubble environment.. the loan is for Investors to manage CASH FLOW... i.e. Investor owns 15 props, has them on Option ARMS,,guy has a few bad months or has a few vacant props. then he would use the Teaser rate for a few payments to keep his cash flow going. then when he gets new tenants he goes back to fully indexed payments.. Permalinkcatherine at 22:36 2009-02-17 said:
the is nothing wrong with the Option ARM it is a great tool for INVESTORS not LOSER HOMESTEAD BUYERS TRYING TO MAX OUT THEIR HOUSE PURCHASE the loan was never designed to be used in a bubble environment.. the loan is for Investors to manage CASH FLOW... i.e. Investor owns 15 props, has them on Option ARMS,,guy has a few bad months or has a few vacant props. then he would use the Teaser rate for a few payments to keep his cash flow going. then when he gets new tenants he goes back to fully indexed payments..you are right and I was with savings of america who created this product in 80-82 tied to cofi, not libor (huge mistake tying it to libor, the government sneezes and the rate goes up) but you had to know what you were doing to sell it, BET NO BORROWERS KNEW THE RECAST RULE AT WORLD, my borrowers knew every pimple, that was what my reputation was and we did the loan AT FORTY YEARS, gave borrowers some room but everytime I needed an illegal loan I sent them to World and they got the home and as unemployment grows to 25% the illegals are just going to go home and when World's owners made almost 3 billion selling their toxic pool (cause they knew the world was falling in in 06, I saw the signs in 05 and I am a small potato) and the wachovia boys knew what was coming or should and now this loan will sink a whole lotta people Permalink
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